There are plenty of businesses big and small lining up for a piece of President Obama's
$787 billion stimulus package, but two largest U.S. telecom companies Verizon Communications Inc. (NYSE:VZ) and AT&T Inc. (NYSE:T) may not be among them.
According to Bloomberg, the two largest providers of broadband services are worried that the $7.2 billion the government is blocking off for high-speed Internet projects will end up acting like venture capital that bankrolls new competition for them. The news service
writes:
"[Verizon and AT&T are] urging the government not to help other companies compete with them through broadband grants or to set new conditions on how Internet access should be provided. ... The companies have remained noncommittal as they lobby to shape rules for the grants."
The two telecoms may have good reason to worry as entrepreneurs are likely salivating at the thought of billions in new grant money becoming available. According to The Deal's venture capital database only about $650 million went to telecom startups last year. With venture capital money becoming harder to get over the past year, the handing out of hundreds of millions to small companies looking to gain traction could end causing plenty of disruption for the 800-pound gorillas in the telecom space. -
George White See Bloomberg storySee Pipeline story on stimulus package
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